Bitcoin’s potential for hitting $100,000 is becoming more plausible as the correlation between the cryptocurrency and the stock market begins to decrease. This development has been noted by Santiment, a market intelligence platform, which believes that Bitcoin is on a divergent path from the S&P 500, signaling a bullish trend for the leading cryptocurrency.
The director of marketing at Santiment, Brian Quinlivan, highlighted the significance of this divergence, stating that throughout the history of crypto, extended bull runs have occurred when there is little to no correlation with the S&P 500. While the movement doesn’t necessarily have to be opposite, the fact that crypto and equities are moving in their own ways is seen as a positive sign for Bitcoin’s future.
This divergence was observed when fresh inflation data was released, causing equities to plummet. In contrast, Bitcoin initially dropped in anticipation of the bad news but quickly rebounded and surpassed $70,000. On the other hand, the S&P 500 remained stagnant and even decreased slightly. Such a pronounced divergence is a rarity, as crypto and equities have maintained a tight correlation for the past two years.
The decreasing correlation between Bitcoin and stocks opens up the possibility of Bitcoin achieving new all-time highs. With Bitcoin currently trading at around $70,400, the potential for reaching $80,000, $90,000, and even $100,000 becomes more plausible.
While the reasons for these divergences are multifaceted, the occurrence itself suggests that Bitcoin is carving out its own path and gaining independence from traditional market influences. Investors and crypto enthusiasts alike will be closely monitoring Bitcoin’s future trajectory, as a decoupling from stocks could lead to significant gains for the leading cryptocurrency.
Please note that this article does not constitute investment advice, and individuals should conduct thorough research and exercise caution when investing in Bitcoin or any other high-risk assets.
The cryptocurrency industry has been experiencing a significant shift as Bitcoin’s correlation with the stock market begins to decrease. This development is being closely observed by market intelligence platform Santiment, which believes that Bitcoin’s divergence from the S&P 500 signals a bullish trend for the leading cryptocurrency.
Historically, extended bull runs in the crypto market have occurred when there is little to no correlation with traditional equities. This decoupling is seen as a positive sign for Bitcoin’s future, and it is worth noting that the movement doesn’t necessarily have to be opposite.
Recent data on inflation had a notable impact on Bitcoin and stocks, further emphasizing their divergent paths. Equities plummeted in response to the inflation data, while Bitcoin initially dropped but quickly rebounded, surpassing $70,000. In contrast, the S&P 500 remained stagnant and even experienced a slight decrease. This pronounced divergence is relatively rare as the correlation between crypto and equities has been tight for the past couple of years.
The decreasing correlation between Bitcoin and stocks is leading to increased optimism about Bitcoin’s potential to achieve new all-time highs. With Bitcoin currently trading at around $70,400, the likelihood of it reaching $80,000, $90,000, and even $100,000 is becoming more plausible.
While the reasons behind these divergences are complex, they suggest that Bitcoin is establishing its independence from traditional market influences. This trend is being closely monitored by investors and crypto enthusiasts, as a further decoupling from stocks could potentially result in significant gains for the leading cryptocurrency.
It is important to note that this article does not provide investment advice, and individuals should exercise caution and conduct thorough research when considering investments in Bitcoin or any other high-risk assets.
For more information on the cryptocurrency industry and market forecasts, you can visit CoinDesk or Cointelegraph. These websites provide comprehensive coverage of the industry, market trends, and news related to cryptocurrencies.